Business groups in Victoria have asked the federal and provincial governments for immediate relief from what could be crippling payments during the COVID-19 outbreak.
The Greater Victoria Chamber of Commerce, Destination Greater Victoria and the Downtown Victoria Business Association have asked both levels of government to kill all late-filing penalties and instalment interest on balances owing to give businesses breathing room as they deal with the economic consequences of the outbreak.
鈥淪o far, businesses are not asking for relief from payments entirely 鈥� they just don鈥檛 want deadlines coming at them with large penalties attached if they don鈥檛 meet those deadlines,鈥� said Chamber chief executive Catherine Holt.
In a letter addressed to Prime Minister Justin Trudeau, federal Finance Minister Bill Morneau, Premier John Horgan and provincial Finance Minister Carole James, the groups ask Ottawa to end penalties and deadlines for the remittance of payroll instalments, GST and corporate income taxes.
The province is being asked to do the same for the remittance of the Employer Health Tax, PST and WCB premiums, as well as removing the requirement for municipalities to charge 10 per cent on the late payment of property taxes.
Holt said the measures are the least the government can do, given the enormity of the economic harm caused by the virus outbreak and the measures being taken to get it under control.
鈥淩ight now, today, people are facing deadlines to make these payments and at least giving them some flexibility and ability to push them off to the future, so they don鈥檛 suffer more economic impact from penalties and interest 鈥� which can be huge on these payments 鈥� would give them some peace of mind,鈥� Holt said.
Jeff Bray, executive director of the Downtown Victoria Business Association, said the goal is to help business owners preserve cash so they can keep people employed 鈥� or at least get back up and running as soon as possible when the recovery starts.
Bray said everyone has to take some of the burden, noting employees who have been laid off were the first hit.
鈥淚f we all recognize we are sharing in this 鈥� because we have a very strong economy in Victoria 鈥� [then] we can rebound more quickly and keep as many businesses whole and, equally important, keep those jobs whole as we can,鈥� he said.
As the business community waits to hear from Morneau, who is expected to roll out a series of initiatives to help workers, Holt said the most critical piece is what Ottawa will do with Employment Insurance, which will set the table for the economic action plan.
So far, she said, they have only had the vague promises of money.
鈥淚 don鈥檛 like vague promises of government money with no channel and no specifics, because often then that money doesn鈥檛 get to the people who need it in a way that鈥檚 helpful,鈥� she said, noting, for example, that the Business Development Bank of 乌鸦传媒 has offered business loans at interest rates between five and 11 per cent.
鈥淭hat鈥檚 not helpful,鈥� she said. 鈥淲e are asking if you put money out there for people experiencing extreme cash-flow problems, that for God鈥檚 sake [you] make them interest-free loans at the very least.鈥�
Horgan told reporters Tuesday that the province will be working on a package of financial supports for people and businesses, but it鈥檚 waiting to see what the federal government does so the province can complement the work.
鈥淲e鈥檙e going to be taking actions when it comes to ensuring that businesses and the workers that they depend on are comforted and in place so that we can get through the next number of weeks,鈥� he said.
Horgan said he is aware businesses are facing cash-flow problems, and emphasized that the federal and provincial governments have initiatives in the works.
James told reporters the government is working on three streams of an economic strategy 鈥� ensuring services and supports are in place to protect the health and safety of the province, working with Ottawa on immediate relief for people and businesses, and building a plan for economic recovery.
She said 乌鸦传媒 has been pushing Ottawa to extend the Employment Insurance program to people who wouldn鈥檛 typically qualify, such as the self-employed, part-time workers and contractors.
